Exam 12: Environmental Protection and Negative Externalities

In addition to the current levels of air and water pollution, a list of important environmental issues would most likely include:

Four companies, Alpha, Beta, Gamma and Delta, are burning coal to produce electricity. As a result, they also produce emissions. In the table below, the first row of shows the total pounds of emissions currently produced by each firm. The other rows of the table show the cost for each firm of reducing emissions by the first 50 tons, the second 50 tons, and so on. The total cost of requiring each firm to reduce its garbage by one third is

Why do U.S. economists commonly refer to externalities as an example of market failure?

Briefly explain how command-and-control regulation works.

Which of the following will need to strike some balance between economic output and environmental quality as a prominent climate change priority?

Two logging companies are deciding whether or not to cut down a significant portion of a particular forest that both have access too. Both companies understand the environmental consequences of their actions, knowing that they are trading off higher profits for a better outcome from society's point of view. The payoffs facing these companies are given in the table below. From the table, we know that if Company 2 chooses to cut, Company 1 will choose to _______ the forest. If Company 2 chooses to not cut, Company 1 will choose to _______ the forest.

Market failure describes a situation in which the market itself _______ in a way that balances social costs and benefits.

Marketable permits work best when there are _______ permit holders who are highly interested in trading.

The problem of pollution arises in primarily _______economies around the world.

A country is currently creating 40 million tons of toxic waste per year. The table below shows the marginal costs and benefits of reducing the amount of toxic waste to various amounts. What number belongs in place of X?

When a government establishes a marketable permit program to address environmental pollution, it is actually issuing a form of

Command-and-control regulation is a body of law that

Four companies, Alpha, Beta, Gamma and Delta, are burning coal to produce electricity. As a result, they also produce emissions. The first row of the table below shows the total pounds of emissions currently produced by each firm. The other rows of the table show the cost for each firm of reducing emissions by the first 50 tons, the second 50 tons, and so on. The government wants to reduce emissions by one third, and does so by issuing marketable permits based on the current level of emissions where the permits will shrink the allowable amount of pollution by one third. Alpha will reduce emissions by _______ tons, Beta will reduce emissions by _______ tons, Gamma will reduce emissions by _______ tons, Delta will reduce emissions by _______ tons, for a total cost of _______.

The International Ecotourism Society estimates that international tourists interested in seeing nature or wildlife spend over

Those firms in the oil refining industry that can reduce pollution _______ will do so _______.

Property rights are the legal rights of ownership on which others are

Which of the following is used to describe the full spectrum of animal and plant genetic material?

If a steel manufacturer considers the costs of labor and materials, as well as the broader costs of environmental injuries resulting from its manufacturing processes,

An economist is more likely to identify _______ as a more efficient and flexible way for society to _______.